Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
On
“INVENTORY MANAGEMENT TECHNIQUE”
At
Submitted To
DR AKTU LUCKNOW
Submitted By
SHAMMI KUMAR
MBA-II
(2019)
Under the Guidance of
I hereby declare that the information I have gathered during the period of field
work report I have collected all these information is correctly in this particular
period, which is to be completed as per rules of the A K T University
for the time MBA-II course that I am pursuing at the STEP HBTI
Kanpur .I honestly express that the formation is not collected with any
commercial
intention and motivation. The sole motive is to Mahindra CIE Auto.Ltd, the
INVENTORY MANAGEMENT TECHNIQUE practice and prepares
fieldwork.
Thus the sole object of collecting information is of academic purpose and I
sure that
collected information is of academic purpose shall be only for fieldwork
report and
nothing else.
1 INTRODUCTION 5-7
2 ORGANIZATIONAL PROFILE 8-12
2.1 Introduction of the organization 8
2.2 History of the organization 8
2.3 Vision, Mission, Core Values 8
2.4 Quality Perspectives 9
2.5 Product Portfolio 10
2.6 Customers 12
3 RESEARCH METHODOLOGY 13-15
3.1 Objectives 13
3.2 Scope of the project 14
3.3 Limitations of the project 14
3.4 Data collection technique 15
4 DATA ANALYSIS 18-30
5 FINDINGS 31
6 CONCLUSION 32-33
7 SUGGESTIONS
8 RATIONAL OF THE PROJECT
9BIBLIOGRAPHY
CHAPTER 1
INTRODUCTION
1. INTRODUCTION
INVENTORY MANAGEMENT
1.STOCK REVIEW
Stock review is a regular analysis of stock versus projected future needs. This
can be done through a manual review of stock or by using inventory software.
Defining your minimum stock level will allow you to set up regular inspections and
reorders of supplies. Make sure to take into account certain situations that can arise,
such as vendors taking longer than average to replenish stock. This will aid you in
using just-in-time ordering, where the inventory is held for a minimum amount of
time before it moves to the next stage in the supply chain.
In businesses where manual inventory management techniques are still in use, the
primary inventory control methods include:
Visual control
Tickler control
Click-sheet control
You shouldn’t perform manual reviews because they can take a lot of time and
possibly produce errors. Businesses are starting to invest in software to automate
the
review, and it will help organizations keep track of their inventory, ensure timely
reorders, and avoid costly shortages.
1.ABC ANALYSIS
This is a popular way to analyze your inventory. Under this method, you classify
the
inventory into three categories, such as A, B and C. These categories are based
upon
the inventory value and cost significance. Also, the number of items and values of
each category are expressed as a percentage of the total.
To manage each category separately: The nice thing about group C is that it can
be
fairly hands-off, while group A requires special attention. You can use ABC
analysis
in conjunction with the just-in-time technique to help you get your reorder timing
just
right.
2.VED ANALYSIS:
SDE analysis classifies the items into three groups called ‘Scarce’, ‘Difficult’
and ‘Easy’. The information so developed is then used to decide purchasing
strategies.
5.JUST IN TIME:
2.2 History:
This undoubtedly makes them a proud supplier with a strong foothold on the
market dynamics and thereby earning the goodwill of our Customers to the hilt.
2.2Vision:
Vision:
Core Values:
1. Customer satisfaction & Responsiveness
2. Entrepreneurship
3. Professionalism
4. Integrity & Ethics
5. Respect & Dignity to all the individuals.
2.4Quality Perspectives:
QUALITY POLICY:
QUALITY OBJECTIVES
Customer Satisfaction:
- Heavy press shop with heavy duty press of 1000T (H), 1000T (M)
And followed by various 600T, 500T, 400T & 300T (Mech) battery
of presses to cater light/medium and heavy sheet metal
Stamping with skin panel.
Mungi Group has an impressive track record of services for customers who are
the leaders in their segments. The group has proven itself to give our customers a
competitive advantage with our world class quality, outstanding customer service
and
competitive pricing.
Primary data are information collected or generated by the researcher for the
purposes of the project immediately at hand. For example,an investigator wants to
know about the level of job satisfaction enjoyed by the workers industry. He can
prepare a schedule and meet a sample number of workers and ask for their
opinions.
This is going to be the information collected for the object of this study and
therefore
becomes primary in nature. When the data are collected for the first time, the
responsibility for the processing of data also rests with the original investigators.
Ordinarily, experiments and surveys constitute the main sources of primary data.
For
better understanding of the nature of primary sources of data advantages and
disadvantages will have to be studied.
PRIMARY DATA:
1.Observation
2.Interview Schedule
3.Questionnaire
METHODS OF COLLECTING PRIMARY DATA
The Primary data are the information generated to meet the lesser specific needs
of the investigation at hand. Thus, the investigator has to collect,data separately
for
the study undertaken. The following are the three methods which are used to
compile
primary data.
(1) Observation
(2) Schedule and questionnaire
(3) Interview.
1) Observation:
This is one of the cheaper and more effective techniques of data collection.
This approach to the collection of information is as old as human race. Much of
our
knowledge about human beings, rounding is collected only through this process.
Observation is indispensable not only in sciences but in social sciences research
also
observation has its own utility. It is not always possible to quantify the data and
draw
accurate conclusions on the basis of such data. Thus, the observation method is
generally adopted for testing hypothesis.
2) Interview
Secondary data refer to theinformation that has been collected by someone other
than a researcher for purposes other than those involved in the research project at
hand.There are various factors such as the nature of the study, status of the
investigator,
1.Internal Sources:
2.External Sources:
Company Website:
Some information is collected from company website.
Books:
Textbook of Logistics and supply chain management by D K Agrawal and
Inventory
Management by L C Jhamb is used during the study.
CHAPTER 4
DATA ANALYSIS
2. DATA ANALYSIS
The concept ABC (Always Better Control) Analysis is based on „Think on the
Best and then on the Rest‟. ABC analysis underlines a very important
principle “Vital
few: trivial many” Generally, companies are required to keep stock of large
number of
items used in production and distribution. In practice, it is not possible to maintain
nd control a similar/ proper level of inventory of all items, which is also not
feasible
due to resource constraints. Hence, the prevalent practice is that sincere efforts are
made to have a proper control on the most circulating items and least on rare
circulating once.
ABC analysis offers a basis for grouping of items on certain basis of annual/
monthly consumption value. In other words, of an item‟s unit price is very
little but ifit is a most circulating items and its monthly/annual consumption value
is maximum,
then closer and careful control will be done and vice versa. Hence, In ABC
analysis,
items are categorized in three broad groups, namely; A, B, and C, on the basis of
their
monthly/annual consumption value.
CONSUMPTION VALUE
It is usually found that 20% of the total items account for 65% of the total money
spent on the materials. These items require detailed and rigid control and need to
be
stocked in smaller quantities.These items should be procured frequently, the
quantity
per occasion being small. A healthy approach, however, would be to enter into
contract with the manufacturers of these items and have their supply in staggered
lots
according to production programme of the buyer. This, however, will be possible
when the demand is steady. Alternatively, the inventory can be kept at minimum
by
frequent ordering.
For example, if the fraction carrying charge is 20 % per year and a material worth
Rs. 1000 is kept in inventory for one year, the unit carrying cost will be Rs
200item/year. It is obvious that for items that are perishable in nature, the
attributed
carrying cost will be higher.
It may be due to lost sales or backlogging. In the backlogging (or back ordering)
case
the order is not lost but is backlogged, to be consolidated as soon as the item is
available on stock. In lost sales case the order is lost. In both cases there are
tangible
and intangible costs of not meeting the demand on time. It may include lost
generally
expressed as Rs/ item short/ unit time.
The precautionary motive is also at work. Inventories are held so that there is a
cushion against unpredictable events. For instance there may be sudden and
unforeseen spurt in demand for finished goods or there may be sudden and
unforeseen
slump or delay in supply of raw material or other components needed for
production.
An enterprise would surely like to have some cushion to tide over such situation.
- Inventories may also be held so that advantage can be taken of price
fluctuations. For instance, if the price of a particular raw material is expected to
go up
rather steeply, an enterprise may decide to hold a larger necessary stock of this
item
(acquired prior to escalation).
5. Do you apply the above practices to all parts of your inventory (finished goods,
material, works in process and spare parts) and in all organizational entities?
In today‟s dynamic market “Every Bench marks are dynamic, challenge them
for continual improvement”. In order to remain in market any organization
needs to
define the process, Benchmark for the excellence, endeavor to achieve it by
strategizing & creating environment, providing required resources & effective
monitoring.
1. Recording level is not proper. This leads to increased inventory on shop floor.
Proper monitoring and reordering of data is to be done on shop floor.
Rational of study refers to the worth and utility of the study from the future point
of
view. Following are the worth and utility of the study from the future point of
view:
The study of the project has helped me in gaining practical knowledge and insight
into
one of the significant inventory management system.
The project work will help me in my future job prospective, as it will guide me to
give
Better work satisfaction to employee.
The recommendations and suggestions by this project work will guide the
Organization.
Workers can facilitate high standards and a safe and nurturing environment.
It is useful for organization to know how employees view the workplace, pay and
benefits their supervision.
For the improvement of the organization, summer training can provide the data for
future policies and strategies.
CHAPTER 9
BIBLIOGRAPHY
9.BIBLIOGRAPHY
3. www.fishbowlinventory.com/articles/inventory-
management/inventorymanagement-techniques/
4. http://www.managementstudyguide.com/inventory-management.htm